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The “Death” of the Business Plan and Implications for Dynamic Organisational Design The paper will challenge common thinking in regards to Business planning and strategic execution. The session will seek to link business modelling with tactical planning and highlight the implications for effective team dynamics, organisational design and strategic delivery. The paper will be broken into five parts; 1) The Disconnect 2) The Business Model vs Business Modality 3) The Collective 4) The Critical mass 5) The Conclusion Contact me if you have any questions?
Citation preview
The Death
of the
Business
Plan
Implications for
Organisational design
Chris Catto
The Disconnect Business Plan
or Fanciful
Treasure map?
PESTAL
SWOT
5 Forces
BSC
Chris Catto
The Disconnect
The Construct
The Business Plan Audience
What about what the customer wants?
Who deals with the customer?
Hierarchy and span of control?
Perception?
Motives?
Professional Managers v Industry Experts (the consumer
inside?)
Chris Catto
What is his View?
How much does
his view matter?
Chris Catto
The Application
• Budgets &
Forecasts
• Performance
Appraisals
• KPIs & KRAs
• Individual
Bonuses
• Salary Bands
• Gaming
The Disconnect
Chris Catto
Business Model v Business
Modality
Natural Business
State
Solid v Fluid?
Static or Moving
Parts?
Chris Catto
What is the Modality of
your Industry?
What parts require:
Updating?
Maintenance?
Re-engineering?
Replacing?
Each industry has a
particular tried and
tested methods of
revenue generation,
product development,
manufacturing, service
delivery and customer
service.
While the fundamental
principles of the
business modality
remain constant,
tactics for delivery
are continuously
improved, challenged,
refined and enhanced
with the introduction
of new technology and
change in social norms
Chris Catto
Is your Industry Modality
Changing?
When does the Modality Die?
When the vehicle for servicing
the “need” changes
If the Need no longer exists,
Then The need you were
servicing was a fad!
How often has your
Modality been reinvented
or even completely
substituted across
History?
Chris Catto
The Collective
The Artisans of the 21stCentury
Individuals form Teams within the Business Modality –
Modality is formed of natural overlapping
components.
Teams have collective Skill sets that complement the
Modality Components.
Modality Components include: Sales, Marketing,
Product development, engineering, manufacturing,
Logistics, service delivery, Administrative Support
Leaders within the teams are self determined by
combination of skill Mastery and as the facilitators of
Collaboration. Ultimately Leaders act as natural
catalyst for problem solving.
Chris Catto
The Collective
McGregor: Theory X Theory Y
Maslow: Hierarchy
of Needs
Argyris: Theories of
Action, double loop
learning
Organisational Performance
is a function of Environment
The Collective Mastery of
skill in a favourable Human
Environment
Principle for individual
Performance is mirrored
Mastery of required skill
placed in a favourable
human Environment
Chris Catto
The Critical mass
Each business has
a tipping point
A critical mass
required to;
first - to break
inertia
Second - to
continuously
service the
critical mass to
maintain
momentum
The momentum in
business is
represented by
the Flow of
sustainable Cash
The Implication
for
Organisational
design is to align
the collective
skills with the
Business
modality;
That generates
the cash flow
momentum; That
exceeds the
Sustainable
Business tipping
point
Chris Catto
The Critical mass
Just as seasonal rains bring
life to the living environment
The Focus of Organisation
Design is to maintain momentum
of Cyclical
*Self improvement
*Advancement of Collective
knowledge
*Innovation
*Product Development
*Infrastructure reinvestment
*Positive Market Engagement
The Rain that maintains the
momentum of the water wheel
The Conclusion
The Business Plan as we know it is
as useful as a message in a bottle
• Designed for Wrong Audience
• Insular,
• hopeful,
• A Limited communication Medium
• Practically direction less,
• beholden to the currents that
surround it
Chris Catto
Alternative:
Strategic Modality Statement
1) Understand the Modality
that services the core need
2) Align the Collective
3) Recognise change and
Sustain Critical mass
Implications for
Organisational Design
The Artisan Organisation
Designed around Teams of Skill
and mastery optimised in a
favourable Human
Environment
Chris Catto
The Author
Chris Catto
Director & Chief Performance
Partner – Putney Breeze
Business Advisors
Author of Premiership Business
For more information, strategic facilitation or Speaking
engagements contact [email protected]